Two massive Ethereum transactions just came out of FalconX, with Lookonchain connecting them to ETH treasury company BitMine.
BitMine received 48,049 Ethereum from FalconX
In a new article on X, on-chain detective Lookonchain highlighted how BitMine appears to have acquired 48,049 ETH from a hot wallet connected to FalconX, an institutional digital asset trading platform.
Coins are transferred via two transactions to two different wallets. The largest transfer involved 31,867 ETH, while the smallest 16,182 ETH. In total, the tokens were worth approximately $140.58 million at the time of the transaction.
The two transfers made by BitMine to acquire ETH during the past day | Source: @lookonchain on X
These moves came as Ethereum plunged alongside the broader cryptocurrency sector, with its price falling below the $3,000 level. So, it would seem possible that they are a sign that BitMine is buying the dip.
Originally a company focused on Bitcoin mining, BitMine became an Ethereum treasury vehicle under President Tom Lee in June of this year. Since then, the company has rapidly accumulated the cryptocurrency and established itself as the ETH “strategy”.
On Monday, BitMine issued a press release announcing that its holdings reached 3,967,210 ETH. So far, the company has not made any official announcement regarding the latest purchase, but if confirmed, the total reserve would exceed the 4 million ETH mark.
The company has set a target of 5% of the total circulating supply of Ethereum. As of now, the company still has a way to go before reaching that goal, but with about 3.3% of the offering currently in its portfolio, it has certainly made significant progress.
With holdings valued at over $11 billion, BitMine is the second largest cryptocurrency holding company in the world, behind Strategy. However, unlike Michael Saylor’s company, the Ethereum accumulator’s treasury is currently in the red. Nonetheless, if both blockchain transactions correspond to purchases, then it is a sign that BitMine is still determined to accumulate more.
CryptoQuant community analyst Maartunn explained in an article how the price of Ethereum has changed since BitMine began its accumulation spree. The chart shows that during the initial buying period, ETH experienced rapid growth.
The trend in the capital invested by BitMine into ETH | Source: @JA_Maartun on X
However, despite continued purchases from the Treasury company, the price of the asset initially stagnated and then declined. “Large purchases ≠ sustained momentum,” the analyst noted.
ETH Price
Ethereum managed to rally back to $3,400 last week, but the coin has once again seen bearish momentum since then, with its price returning to the $2,930 level.
Looks like the price of the coin has plummeted over the last week | Source: ETHUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, intel.arkm.com, chart from TradingView.com
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